D&L Industries raises capital to Php18-B through stock dividend

MANILA, June 8 (PNA) — D&L Industries, a listed food and plastic input manufacturer, will increase its capitalization by whopping 350 percent from Php4 billion to Php18 billion through stock dividend.

Shareholders approved the increase in the company’s capitalization to Php18 billion or 18 billion shares, with par value of Php1.00 a-piece.

To finance higher capital, D&L declared a 100-percent stock dividend totaling 3.57 billion shares.

“The increase in capitalization ensures the company’s financial flexibility in the future. Further, implementing this through stock dividends instead of equity sales avoids shareholder dilution,” it told the local bourse following the company’s annual stockholders’ meeting on Monday.

D&L said the stockholders also gave the go-signal for a move to sell the property of its wholly-owned subsidiary, Chemrez Technologies.

The property is comprised of 6,000 square meters of land with building and other improvements.

“With property ownership a non-core activity, the sale is consistent with the company’s focus of deploying resources of the manufacturing group to core operations,” it further said.

D&L Industries is engaged in product customization and specialization for the food, plastics and aerosol industries. (PNA)